10 Main Characteristics of Consumers Co-operative Stores

Some of the main characteristics of consumers co-operative stores are as follows:

These are known as consumer co-operative stores. These are owned and managed by the consumers themselves in order to eliminate middlemen and to obtain their requirements at reasonable prices. They are also termed as consumer co­operative societies.

According to Stephenson “A consumer’s co-operative store is a combination of persons whose aim is to economise by buying in common and to retain their profits by selling in common”. These stores buy goods in bulk and sell them at prevailing market rates to the members and the non-members. The profits earned by the stores are returned to the members in accordance with the purchases made by them.


(1) A consumers’ co-operative society is a voluntary association of persons and is registered under the Co-operative Societies Act.

(2) The membership of these stores is open to all the adults.

(3) There is a democratic control and management of the affairs of these societies.

(4) Goods are sold to members or non members on cash basis.

(5) Capital of these societies is raised by issuing shares to the members. The shares are usually of smaller denomination, so that persons having limited income could also contribute and become members of the societies. Right to withdraw the capital is also given to the members as and when they like.

(6) Every member is allowed to cast one vote irrespective of the number of shares purchased by him. The societies operate on the principle of ‘one member one vote’.

(7) Very less amount is spent on advertising. This is because the goods are mainly purchased for the members.

(8) The accounts of these societies are regularly audited by an auditor appointed by the Registrar of Co-operative Societies.

(9) The goods are purchased by the societies in bulk thereby availing the economies of large scale purchasing.

(10) The members are given dividend on the amount of shares held by them.

The rate of dividend in case of co-operative societies cannot exceed 6(1/4) %.

Submitted by : Dr. Annapurna, Category : Stores, Tag : Co-operative Stores